Consumer Protection Act

Introduction
The Consumer Protection Act was enacted in 1986. Amendments were made in 2002. The Act applies to the whole of India except the State of Jammu and Kashmir. An Act to provide for the better protection of the interest of the consumers. Establishment of Consumer Councils and other authorities for the settlement of consumers disputes.

Objectives
Right of protection to life and property Right to be informed Right to choose

Right to be heard
Right to redress Right to education

Definitions
Consumer he is a person i) who buys any goods for a consideration which has been paid or promised,or partly paid and partly promised, or under a system of deferred payment. ii) hires any services for a consideration which has been paid or promised,or partly paid and partly promised, or under a system of deferred payment.

Who are not consumers? 1. A person who purchased goods for resale 2. A person who purchased goods for commercial purpose 3. A person who obtains services without consideration 4. A person who obtains services under a contract of personal service 5. Tax-payers to municipality 6. Contractors 7. Applicants for jobs 8. Persons who filed suits in courts

Consumer Disputes : sec 2(1)e a dispute where the person against whom a complaint has been made denies or disputes the allegations contained in the complaint. Defect any fault, imperfections or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service.

Deficiency : 2(1) g

means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service.

Service : Sec 2 (o) service of any description which is made available to potential users and includes the provisions of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, boarding or lodging of good, house construction, entertainment, amusement or other information.

Complaint Complaint means any allegation in writing made by a complainant thati) an unfair trade practice or a restrictive trade practice adopted by any trade or service provider ii) the goods bought by him or agreed to be bought by him suffers from one more defect iii) the services hired or availed of or agreed to be hired or availed of suffer from deficiency in any respect iv) a trader or the service provider, as the case may be, has charged for the goods or for the services mentioned in the complaint, a price in excess of the pricea) fixed by or under any law for the time being in force b) displayed on the goods or any package containing such goods c) agreed between the parties

Consumer Disputes Redressal Forums

The aims and objectives of the Act are achieved by the constitution and creation of

District Forum State Commission and National Consumer Disputes Redressal Commission.

A District Forum shall have the powers

1.

to remove the defect pointed out by the appropriate laboratory from the goods in question to replace the goods with new goods of similar description which shall be free from any defect to return to the complainant the price, or as the case may be, the charges paid by the complainant to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party

2.

3.

4.

District Forum
Each District Forum shall consist of a person who is or has

been or is qualified to be a District Judge who shall be its President two other members, one of whom shall be a woman possessing a bachelors degree from a recognized university, be a person of ability, integrity and standing and have adequate knowledge and experience

Every member of the District Forum shall hold office for a

term of 5 years or up to the age of 65 years which ever is earlier.

Subject to the other provisions of the Act a District forum shall

have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed Rs.20 Lakhs.

State Commission
Each State Commission shall have jurisdiction to entertain complaints where the value of the goods or services and compensation, if any, claimed exceeds Rs. 20 Lakhs but does not exceed Rs.1 Crore and appeals against the orders of any District Forum within the State.

National Commission
The National Commission shall consist of a person

who is or has been a Judge of the Supreme Court, shall be its President. Not less than 4 and not more than such number of members as may be prescribed and one of whom shall be a woman with similar qualifications as required in the case of appointment as a member to a District Forum or a State Commission. office for a term of 5 years or up to the age of 70 years which ever is earlier.

Every member of the National commission shall hold

The National Commission shall have jurisdiction to

entertain complaints where the value of the goods or services and compensation, if any, the claim exceeds Rs. 1 Crore and appeals against the orders of any State Commission.

Consumer Disputes Redressal Forums

The District Forum, State Commission or the National Commission shall not admit a complaint unless it is filed within 2 years from the date on which the cause of action has arisen.
Where a trader or a person against whom a complaint is made fails or omits to comply with any order made by the District Forum, the State Commission, the National Commission, as the case may be, such trader or person shall be punished with imprisonment for a term which shall not be less than 1 month but which may extend to 3 years, or with fine which shall be not less than 2,000/Rs. but which may extend to 10,000/-Rs., or with both.

A complaint may be filed by

1. 2.

3.

4.

The consumer to whom such goods are sold Any recognized consumer association, where the consumer to whom goods are sold or delivered is a member One or more consumers, where there are numerous consumers having same interest The Central and State Government

Procedure of Complaint
Complaint relating to goods
1. 2. 3.

4. 5.

Reference of sample to laboratory Deposit of fees Remission of fees to lab and forwarding of report to opposite party Objections Reasonable opportunity to parties

Complaint relating to services

1. 2. 3. 4. 5. 6.

Reference of claim to opposite party Denial of allegations by the opposite party Settlement of dispute Proceedings of district forum final Death of complainant period

Findings and Verdicts

a) b) c) d) e) f) g) h)

To remove the defect To replace the goods with new goods of similar description. To return the complainant the price To pay compensation to the consumer for any loss or injury suffered To remove the defects in the goods To discontinue the unfair trade practices Not to offer hazardous goods for sale To provide adequate costs to parties

Appeals
Appeal to the State commission any person aggrieved by an order made by the district forum may prefer an appeal against such order to the State commission within a period of 30 days Appeal to the National commission any person aggrieved by an order made by the State commission in exercise of its powers may prefer an appeal against such order to the National commission within a period of 30 days

Hearing of appeal Sec 19(a)

No adjournment shall be ordinarily granted by the

state commission or the National comission as the case may by unless sufficient cause is shown and the reasons for grant of adjournment have been recorded. The State commission and the National commission ads the case may be shall make such orders as to the costs occasioned by the adjournment.

Miscellaneous
Protection of action taken in good faith Power to remove difficulties Power to make rules

Laying of rules